The NCC and short-term accommodation in apartment buildings

75 Pages·2017·1.34 MB·English

by  Nielsen, Heather

The NCC and short-term
accommodation in
apartment buildings
2 0 1 8
D i s c u s s i o n P a p e r
THE NATIONAL CONSTRUCTION CODE
AND SHORT-TERM ACCOMMODATION IN
APARTMENT BUILDINGS
Discussion Paper-March 2018
Discussion Paper: The NCC and short-term accommodation in apartment buildings

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Disclaimer
This Discussion paper is intended to be used for consultation purposes only, and is in no way a
substitute for the NCC and related State and Territory legislation.
The Chief Executive Officer of the Australian Building Codes Board Office, as agent for the
Commonwealth of Australia and States and Territories of Australia, does not accept any liability
howsoever arising from or connected to the use or reliance on any information in this publication
to the maximum extent permitted by law.
The information in this publication is provided on the basis that all persons accessing the
information undertake responsibility for assessing the relevance and accuracy of the information
to their particular circumstances.
Published by: Australian Building Codes Board First published: March 2018
GPO Box 2013
CANBERRA ACT 2601 Print version: 1.0
Phone: [phone] Release date: March 2018
Email: [email protected]
www.abcb.gov.au

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Discussion Paper: The NCC and short-term accommodation in apartment buildings

Contents
1 Executive Summary .............................................................................................. 1
1.1 Purpose ...................................................................................................... 1
1.2 Overview of Discussion Paper .................................................................... 2
1.3 Responding to this Discussion Paper ......................................................... 4
1.4 Next steps................................................................................................... 4
2 The National Construction Code ......................................................................... 5
2.1 Introduction ................................................................................................. 5
How to use the NCC ................................................................................... 6
Components of the NCC ............................................................................ 6
The goal of the NCC ................................................................................... 7
General Provisions of the NCC................................................................... 7
Volume One................................................................................................ 7
2.2 Compliance with the NCC........................................................................... 8
Performance Solution ................................................................................. 9
Deemed-to-Satisfy Solution ...................................................................... 10
2.3 Building classifications .............................................................................. 10
Class 1 buildings ...................................................................................... 11
Sole-occupancy unit ................................................................................. 11
Class 2 buildings ...................................................................................... 12
Class 3 buildings ...................................................................................... 12
Determining a building classification ......................................................... 12
Decisions on building classification .......................................................... 13
2.4 Requirements for Class 2 and Class 3 buildings ...................................... 14
Performance Requirements (legal requirements) ..................................... 14
DTS Solutions........................................................................................... 15
3 Short-term accommodation ............................................................................... 19
3.1 Changing market ...................................................................................... 19
3.2 Holiday and Short Term Rental Code of Conduct..................................... 20
4 Concerns with short-term accommodation ...................................................... 22
4.1 Historical concerns ................................................................................... 22
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Discussion Paper: The NCC and short-term accommodation in apartment buildings

4.2 Litigation ................................................................................................... 24
4.3 Jurisdiction reviews .................................................................................. 24
NSW 24
Victoria 25
4.4 Risk-based analysis .................................................................................. 26
4.5 Summary of concerns relevant to the NCC .............................................. 27
Concern 1 – Unclear NCC definitions and criteria .................................... 27
Concern 2 – Unnecessary difference in technical standards .................... 27
Concern 3 – Increase in fire safety risks due to unfamiliarity .................... 28
Concern 4 – Increase in fire safety risks due to fire-isolated stairway
requirements............................................................................................. 28
5 Evidence and extent of concerns ...................................................................... 29
5.1 Historical evidence ................................................................................... 29
5.2 Litigation ................................................................................................... 32
5.3 Jurisdiction reviews and rulings ................................................................ 33
5.4 Risk-based analysis .................................................................................. 34
5.5 Summary of evidence to support concerns............................................... 37
6 Analysis of options to address the concerns ................................................... 39
6.1 Overview of options .................................................................................. 39
6.2 Overview of options analysis .................................................................... 40
6.3 Options A - E ............................................................................................ 41
6.4 Analysis of Options A - E .......................................................................... 42
6.5 Option F - Reduce the stringency of certain Class 3 DTS Provisions in the
NCC 43
6.6 Option G - Include additional fire safety features in Class 2 buildings in the
NCC, or through State and Territory regulation ..................................................... 44
6.7 Option H – Increase the stringency of the non-fire-isolated stairways
requirement for Class 2 buildings in the NCC (D1.3) ............................................ 45
6.8 Option I - Jurisdictions to specify whether short-term accommodation in
Class 2 buildings is a Class 2 or Class 3 through their regulations ....................... 46
6.9 Option J – Expand the NCC Guide wording on Class 2 and Class 3
building classifications ........................................................................................... 46
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Discussion Paper: The NCC and short-term accommodation in apartment buildings

6.10 Option K – Expand the Guide wording on classifying parts of a building
with more than one classification, for Class 2 and 3 buildings (A3.4) .................... 47
6.11 Option L – ABCB to develop non-mandatory guidance on Class 2 and
Class 3 Performance Solutions ............................................................................. 48
6.12 Option M - Jurisdictions to issue guidance on whether short-term
accommodation in Class 2 buildings is a Class 2 or Class 3 building ................... 49
6.13 Option N - Expansion of Holiday and Short Term Rental Code of
Conduct ................................................................................................................. 49
6.14 Summary of options analysis .................................................................... 50
6.15 Discussion of Options ............................................................................... 53
Concern 1 – Unclear NCC definitions and criteria .................................... 54
Concern 2 – Unnecessary difference in technical standards .................... 55
Concern 3 – Increase in fire safety risks due to unfamiliarity .................... 56
Concern 4 – Increase in fire safety risks due to fire-isolated stairways
requirement .............................................................................................. 56
7 Conclusions ......................................................................................................... 57
Appendix A Basis of the NCC building classification system .................... 58
A.1 Characteristics of occupants..................................................................... 58
A.2 Activities carried out by occupants ........................................................... 58
Ability to respond ...................................................................................... 58
Risk of outbreak of fire .............................................................................. 59
A.3 Fire (fuel) load of the building ................................................................... 59
Appendix B NCC Volume One Performance Requirements for Class 2 and
Class 3 buildings 60
Appendix C Methodology used in Chun Report .......................................... 63
Appendix D Review of Chun Report ............................................................. 64
D.1 Summary .................................................................................................. 65
Appendix E Stakeholder Response Form .................................................... 66

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Discussion Paper: The NCC and short-term accommodation in apartment buildings

1 Executive Summary
1.1 Purpose
The Australian Building Codes Board (ABCB) has developed this Discussion Paper to
facilitate broad public consultation on the subject of the National Construction Code
(NCC) and short-term accommodation in apartment buildings.
The Discussion Paper aims to:
 outline the role of the NCC and associated building classifications;
 explore concerns raised previously in relation to short-term accommodation;
 discuss and seek feedback on the effectiveness of the voluntary Industry Code of
Conduct;
 consider other approaches, such as those being explored by the NSW Government;
 explore options to address concerns that are within the remit of the ABCB and NCC;
 present conclusions; and
 provide opportunities for stakeholders to outline their views, provide evidence and
feedback on the options presented and allow the suggestion of new options.
The ABCB believes meaningful consultation can promote trust between industry, the
community and government. Transparency allows stakeholders to consider and judge
the quality of government actions and regulatory decisions. Consultation also provides
an opportunity for stakeholders to participate in the development of policy solutions and
encourages broad ownership of those solutions. For more information on the ABCB’s
consultation philosophy and objectives, visit the ABCB website.
The ABCB is seeking your response to stakeholder questions that are identified through
this document as shaded text boxes.
An example is shown below.
STAKEHOLDER QUESTION 1
Do you consider the Holiday and Short Term Rental Code of Conduct has been
effective in addressing issues such as limiting occupancy numbers, noise control, car
parking, refuse and party rooms?
Yes/No, Please explain your answer.
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Discussion Paper: The NCC and short-term accommodation in apartment buildings

1.2 Overview of Discussion Paper
The ABCB is a joint initiative of all three levels of government. The ABCB is primarily
responsible for developing and maintaining the NCC.
The NCC sets the minimum required level for the safety and health; amenity and
accessibility, and sustainability in the design, construction, performance and liveability
of new buildings (and new building work in existing buildings) throughout Australia.
The NCC is a performance-based code, which means there is no obligation to adopt
any particular material, component, design factor or construction method. This provides
for a choice of compliance pathways. The Performance Requirements, which are the
mandatory requirements, can be met using a Performance Solution, a Deemed-to-
Satisfy (DTS) Solution or a combination of both.
Traditional accommodation buildings such as hotels and motels are considered Class 3
buildings for the purposes of applying the NCC’s DTS Provisions, whereas ‘residential’
apartment buildings are considered Class 2 buildings; this means they are subject to
different requirements under the DTS Provisions.
The NCC does not regulate, nor can it, the length of stay by occupants. This is because
the NCC is purely a design and construction document, nor is it applied retrospectively
to buildings.
Chapters 2 and 3 of this Discussion Paper describe the NCC, compliance pathways and
building classifications in more detail.
‘Short-term accommodation’ is the term used in this Discussion Paper to describe the
rental of a dwelling for short periods, most commonly for weekends or for a few weeks
at a time. The term covers accommodation used by tourists, workers, students and the
like who require residential accommodation for a limited period of time.
A summary of short-term accommodation is discussed in Chapter 4.
Short-term accommodation in Class 2 and 3 buildings is a perennial issue that has been
considered by the ABCB on a number of occasions. Some stakeholders are of the view
that Class 2 buildings should not be used for short-term accommodation due to a short-
term occupant’s unfamiliarity with the building and the potential for exposure to greater
fire safety risks. Concerns have also been raised regarding the amenity of other
occupants in these buildings although this is not an issue able to be controlled through
the NCC. In some cases, the issue has been the subject of administrative tribunal
appeals and court cases.
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Discussion Paper: The NCC and short-term accommodation in apartment buildings

As part of the rapidly growing ‘sharing economy’, websites such as Stayz and Airbnb
have made it even easier for buildings, such as inner-city apartments, to be let for short-
term accommodation. This has led to concerns being raised by some various groups
and individuals.
Whilst many of the concerns raised are not new and are outside the scope of the NCC,
the ABCB is examining these in relation to the NCC and expanding upon work
previously undertaken on this topic. This Discussion Paper will inform that examination.
As explored in Chapter 5 of this Discussion Paper and having regard to the scope of the
NCC, it is considered that the relevant concerns in relation to sole-occupancy units
(SOUs) in Class 2 buildings being used for short-term accommodation can be
summarised as follows:
 Concern 1 – Unclear NCC definitions and criteria
 Concern 2 – Unnecessary difference in technical standards
 Concern 3 – Increase in fire safety risks due to occupant unfamiliarity
 Concern 4 – Increase in fire safety risks due to fire-isolated stairway requirements

Other matters raised that are outside the scope of the NCC and therefore the purview of
the ABCB are not considered as part of this Discussion Paper.
Chapter 7 identifies and analyses 14 options that could address these concerns.
Based on an analysis undertaken, Chapter 8 concludes that a combination of options
could be progressed by the ABCB, in collaboration with State and Territory jurisdictions
where needed, to help address the concerns. This combination of options is listed
below:
 Option F - Reduce the stringency of certain Class 3 DTS Provisions in the NCC
 Option G - Include additional fire safety features in Class 2 buildings in the NCC, or
through State and Territory regulation
 Option H - Increase the stringency of the non-fire-isolated stairway requirement for
Class 2 buildings in the NCC (D1.3)
 Option K - Expand the NCC Guide wording on classifying parts of a building with
more than one classification, for Class 2 and Class 3 buildings (A3.4)
 Option L - ABCB to develop non-mandatory guidance on Class 2 and Class 3
Performance Solutions.
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Discussion Paper: The NCC and short-term accommodation in apartment buildings

1.3 Responding to this Discussion Paper
A Stakeholder Response Form is at Appendix E. It lists all questions contained in this
Discussion Paper and provides an opportunity for stakeholders to provide further
information.
An editable version of the Stakeholder Response Form is also available from the ABCB
website.
Please complete the Stakeholder Response Form and email to
[email protected] with the subject line: Discussion Paper: Short-term
accommodation
Submissions close 8 April 2018.
1.4 Next steps
Responses to the Discussion Paper will inform the next steps of the project. This will
include the development of recommendations for any further work needed and any
proposed changes required to the NCC.
All project recommendations will be presented to the Board of the ABCB for its
consideration in mid-2018.
We encourage your input and look forward to your response.
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